Microsoft to slash rates for temp workers in mid-March

Microsoft is slashing the amount it pays employment agencies for many of its …

In March, Microsoft plans to reduce the amount it pays employment agencies for many of its temporary workers by 10 percent. Furthermore, the target billing rate for future temporary work will be cut by 15 percent. The move will affect both work agencies, which will either have to reduce profit margins and/or worker pay, and the temporary workers who will have to accept pay cuts or find new jobs in the poor economy. The news came in the form of a February 20 e-mail from Duff Hall, Microsoft's US Talent Source Program Manager. If you want to read the details, TechFlash has obtained the full e-mail. The e-mail starts off by laying the blame on the economy:

"In response to the realities of a deteriorating economy, Microsoft is sharpening and deepening its focus on cost savings. To support this focus, a number of changes are being made to the U.S. Talent Source program effective March 2, 2009."

As Seattle Tech Report noted, Microsoft has pushed back that date by two weeks after a couple of agencies asked for more time to do the resulting paperwork. In response to the pay cuts, one temporary worker has gone as far as launching a website called MSRatecuts.org to fight back against Microsoft's decision. The number of temporary workers employed by the company is not publicly known.